Horizon Offshore Awarded Major Contract by Pemex

Horizon Offshore says that Pemex Exploracion y Produccion (Pemex) has issued a letter of award to its subsidiaries, HOC Offshore S. de R.L. de C.V. and Horizon Offshore Contractors, Inc. for the Package 'J' pipelines of the KU-MALOOB-ZAAP project offshore Mexico. The contract calls for the installation, tie-in and associated commissioning of five pipelines under the KU-MALOOB-ZAAP project in the Bay of Campeche. Horizon will utilize its lay barge Lone Star Horizon and a DP2 vessel to perform the project. Engineering and procurement of the 20" and 24" diameter line pipe will begin in February 2006 with construction scheduled to begin in May 2006. In addition to this award, the Company has recently received a change order on its current contract with Pemex that was awarded in June 2005 under the KU-MALOOB-ZAAP project.

David Sharp, President and CEO of Horizon Offshore, Inc. stated, "We believe that there will continue to be excellent opportunities offshore Mexico. The award of this contract, as well as the significant change order for our current project with Pemex, reflects the confidence they have in our project execution. Working for Pemex is a key part of our business plan. This award brings our current backlog to over $315 million."